Median Luxury Home Price At New Record High

The median-priced U.S. luxury home sold for a record $1.225 million in the first quarter, up 8.7% from a year earlier, according to new data from Redfin (NASDAQ: RDFN). In comparison, the median price for non-luxury homes rose by 4.6% year-over-year to $345,000, also a record high.

First quarter sales of luxury homes were up by 2.1% from one year ago; luxury sales started posting year-over-year increases in January for the first time since August 2021. However, sales of non-luxury homes decreased 4.2% year-over-year while sales of those residences have not posted an increase since the end of 2021.

The total number of luxury homes for sale rose 12.6% from a year earlier in the first quarter, the biggest increase on record – at the same time, there was a 2.9% decline in non-luxury inventory. New listings of luxury homes soared 18.5% in the first quarter from one year earlier, marking the second consecutive quarter of double-digit increases – a figure that is roughly seven times greater than the 2.7% increase for non-luxury homes.

Among the nation’s 50 most populous metros, the greatest median sales price increases for luxury homes were in Providence, Rhode Island (16.2% increase to $1.4 million), New Brunswick, New Jersey (15% increase to $1.9 million) and Virginia Beach, Virginia (12.8% increase to $1.1 million). Only eight metros posted year-over-year declines, most notably New York City (-9.9% to $3.25 million), Austin (-6.9% to $1.629 million) and Minneapolis (-2% to $975,000).